DA Update: Good news for central government employees! How much will their DA increase this Holi? know here...
Speculation is once again rife that the central government may announce a dearness allowance (DA) increase for central government employees and pensioners for January-June 2026 before Holi. However, a look at the past five years' pattern suggests that announcements before Holi are not common—especially when the festival falls in early March. Following the announcement of a 3% increase on October 1, 2025, for the July-December cycle, central government employees and pensioners currently receive a 58% DA. The upcoming revision will be the first DA increase outside the 7th Pay Commission, which formally ended on December 31, 2025. Employees and pensioners across all central government departments are expected to receive a 2% DA increase in the next revision. This will increase DA from 58% to 60% of the basic salary, effective January 1, 2026.
DA announcements during Holi and Diwali in the last 5 years
January/June DA announcement
% increase
New DA rate
Holi date
July/December DA announcement
% increase
New DA rate
Diwali date
2025
March 28
2%
55%
March 14
October 1
3%
58%
October 21
2024
March 7
4%
50%
March 25
October 16
3%
53%
October 31
2023
March 24
4%
42%
March 8
October 18
4%
46%
November 12
2022
March 30
3%
34%
March 18
28 September
4%
38%
October 24
2021
DA Freeze (COVID Period)
—
—
March 29
October 21
3%
31%
November 4
A pattern is emerging:
The July-December DA hike has mostly been announced before Diwali since 2021.
The January-June DA hike has generally occurred after Holi, especially when Holi falls in the first half of March.
The only major exception was in 2024, when the March DA was announced on March 7, well before Holi, which occurred on March 25.
In 2025, Holi was on March 14, but the DA hike occurred almost two weeks later, on March 28.
This suggests that expectations of a DA hike before Holi in 2026 may not match recent trends.
Why does the timing of Holi matter?
The notion that DA is linked to Holi stems from the government's practice of announcing two changes each year—one around March and the other around October/November. While the second increase has often coincided with Diwali in recent years, the March announcement hasn't always been made before Holi. When Holi falls early in March, the Cabinet decision typically comes at the end of the month. Therefore, unless there's an unusual rush in the decision-making process, an announcement after Holi is more likely.
First DA Hike After the 7th Pay Commission
The upcoming DA revision for January-June 2026 is significant because it will be the first increase since the 7th Pay Commission's term ended. The 8th Pay Commission has begun work and is expected to submit its report around March-April next year. However, even after submission, implementation may take a considerable amount of time. Based on experience, central government employees and pensioners may have to wait until late 2027 or early 2028 to see actual salary revisions under the 8th Pay Commission. Until then, DA revisions will continue to provide some relief against inflation.
Demand to Merge DA with Basic Pay
Amidst this delay, employee unions and the National Council of Employees-JCM (NC-JCM) are demanding that the current DA, which is now 58 percent, be merged with basic pay. They argue that since the next Pay Commission will take a long time to be implemented, merging DA with basic pay will provide structural relief and help reset the inflation adjustment base. However, there has been no official indication from the government that such a move is being considered at this time.
What should employees expect?
The DA hike for January-June 2026 will be determined by changes in the All India Consumer Price Index (AICPI) data. The final percentage increase will depend on inflation trends in previous months. While festive anticipation always generates excitement, five-year data show that Holi does not always determine the March DA announcement. For now, central government employees and pensioners may have to wait for the Cabinet decision and possibly Holi before clarity emerges on the next DA hike.
Disclaimer: This content has been sourced and edited from TV9. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
